Regeneration and Investment Strategy

Tax Implications

Due to the Council holding acquired or developed assets, it is not anticipated that there will be any corporation tax or income tax implications from this strategy

  • Some properties may be VAT elected, meaning VAT must be charged to tenants. This will be dealt with on a case by case basis and will be covered by the due diligence connected with that acquisition. The Council is able to charge and recover VAT.

     
  • Capital Gains Tax would not apply to assets sold from Council ownership.

     
  • Where investments in companies (such as SPVs) are made in line with this strategy, all tax liabilities will remain with the SPV.